Universities have been warned not to make staff cuts at this time.

The Prime Minister's former Chief Science Advisor Sir Peter Gluckman told the Epidemic Response Committee today that New Zealand will soon again be a significant destination for international students.

“There is a rise in young people wanting tertiary education. As employment options fall, they need a positive path to self-esteem.”

Victoria and Lincoln universities are considering cutting staff pay or hours to deal with projected huge financial burdens.

Grant Guilford, vice-chancellor of Victoria University, told Heather du Plessis-Allan they are considering a 20 per cent pay cut for staff - or moving to a four-day work week.

It comes as the university predicts a $50 million drop in income over several years.

"What we're looking for is what's to stem the losses so we don't undermine the university's future, but protect our staff's jobs, and hence the ideas to buy us the time."